Analysts Have Been Trimming Their Disco Corporation (TSE:6146) Price Target After Its Latest Report

Disco Corporation (TSE:6146) last week reported its latest interim results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Disco reported JP¥179b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥493 beat expectations, being 3.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Disco

Following the latest results, Disco's 16 analysts are now forecasting revenues of JP¥394.1b in 2025. This would be a notable 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to JP¥1,146. In the lead-up to this report, the analysts had been modelling revenues of JP¥400.2b and earnings per share (EPS) of JP¥1,164 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 9.4% to JP¥48,103, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Disco at JP¥72,000 per share, while the most bearish prices it at JP¥37,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Disco's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Disco is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Disco's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Disco going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Disco that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.